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DIPAM To Streamline Processes For Faster Strategic Sales

With 35 Central Public Sector Enterprises being lined up for strategic sale, the Finance Ministry is planning to streamline processes to cut down the time required for the outright sale of such state-owned companies.

Taking a cue from the ongoing strategic sale of Pawan Hans Ltd., the Department of Investment and Public Asset Management is keen that the long-drawn sale process of CPSEs be simplified so that more than one company could be taken up for the sell-off simultaneously.

"We are going to correct the procedure (for strategic sale). It is a bit long and long winding, which was okay initially as everybody had to take a lot of precautions. Now also we will take precaution, but we understand how to go ahead. The process is very important to my mind for strategic disinvestment and that is going to be our endeavour (to simplify it)," DIPAM Secretary Atanu Chakraborty told PTI in an interview.

NITI Aayog recently submitted to the DIPAM the fifth list of CPSEs, profitable as well as non-profitable, which can go in for strategic sales. This takes the total number of CPSEs identified for strategic disinvestment to 35.

The companies which have been shortlisted for strategic sale include Air India, Air India subsidiary AIATSL, Dredging Corporation of India Ltd., BEML, Scooters India Ltd., Bharat Pumps & Compressors Ltd., and Bhadrawati, Salem and Durgapur units of steel major Steel Authority of India Ltd.

The other CPSEs for which approvals are in place for outright sale include Hindustan Fluorocarbons Ltd., Hindustan Newsprint Ltd., HLL Life Care Ltd., Central Electronics Ltd., Bridge and Roof India Ltd., Nagarnar steel plant of NMDC Ltd. and units of Cement Corporation of India Ltd. and ITDC Ltd.

Chakraborty said the department will take up more than one CPSE at a time for strategic sale.

There is a lot of time that we will take for initial work and then finish off everything in a time-bound manner. So the time starts from the day the Expression of Interest is floated and then the process would be finished off quickly. The time, however, would vary from transaction to transaction.

Atanu Chakraborty, Secretary, DIPAM

With regard to Air India, Chakraborty said the DIPAM would wait for the financial results before restarting the process of the strategic sale of the national carrier.